The Nation Newspaper

Category: Insurance

  • NAICOM to enforce third party insurance, others in Kaduna

    NAICOM to enforce third party insurance, others in Kaduna

    The National Insurance Commission (NAICOM), in partnership with the Kaduna State Government, is set to enforce the nation’s five compulsory insurance policies in the state.

    They are motor vehicle (third party) liability insurance, builders’ liability insurance (buildings under construction), occupiers liability insurance on public building, healthcare professional liability insurance and group life insurance.

    The Commission is seeking the support of the state government in enforcing compliance with the compulsory policies.

    Commissioner for Insurance, Alhaji Mohammed Kari, made this known while speaking during a courtesy visit of the officials of the commission to the Kaduna State government over the weekend.

    The Commission, he said, plans to set up its branch in Kaduna just as it mulls opening new branches across the country.

    According to Kari, enforcement of the policies in the state would include provision of genuine insurance products to the government and people of the state, opening of another veritable source of internally generated revenue (IGR) for the state government.

    He said it would also ensure the creation of employment for the citizenry and would free the government of the burden of having to compensate victims from its scarce resources in the event of occurrence of mishaps or natural disaster.

    He said: “In line with our strategic road-map, the Commission has set out reforms needed to reposition the Nigerian insurance sector to effectively serve our growing population and most importantly the financially under-serviced low-income segment. Notwithstanding Nigeria’s vast population, insurance had a mixture of myth, misunderstanding and ignorance defining it. Cultural issues and attitudes have continued to hinder the role of insurance in fast-tracking Nigeria’s economic growth.

    “In keying into the Federal Government’s Financial System Strategy that visioned Nigeria of being a world’s top twenty economy by the year 2020, (FSS2020 development framework), the Commission initiated the “Market Development and Restructuring Initiative” (MDRI) in 2009. The programme has, among its objectives, the promotion of public understanding of insurance; the building of confidence on the Nigerian insurance market; the enforcement and monitoring of compulsory insurances in Nigeria so as to grow premium income for the benefit of the Nigerian economy, thereby increasing insurance density and its contribution to gross domestic product (GDP).

    “Having completed the first phase of execution, which was devoted to awareness creation across the six geopolitical zones, the Commission is now at the verge of kick-starting the second phase of the MDRI project, which is focused on implementation and enforcement of compulsory insurances across the country. These compulsory insurances put in place by various legislation in the country including the Insurance Act of 2003, are imperative because they mainly protect the interest of the third party.

    “In the absence of our active presence, charlatans have moved in to deceive insurance consumers and government alike that they are offering genuine insurance products and protection. The state was at one time a victim. But for our timely intervention the damage would have been unimaginable. We believe this collaboration will open up several opportunities that will be to the benefit of the state as well as the insurance industry when consummated. We have developed a guideline that will make it for easy execution of the collaboration and partnership.”

    Mallam Nasir El-Rufai, represented by his Deputy, Arch. Bala Bantex, said the state government will continue discussion with NAICOM with a view to ensure insurance implementation and penetration in the state. Promising that the commission request will receive full attention of the government, he added that the idea of sanctions to enhance insurance compliance is non-avoidable.

    He said proper adoption of insurance will contribute to the growth of the nation’s GDP, pointing out that the state government has insured some of its facilities with insurance firms, although, he said, the state would now be more careful in order not to deal with quacks.

    The state government, he pointed out, is making it mandatory for market men and women to insure their goods and assets through insurance, pleading on the commission to always ensure that insurance companies pay claims on insured risks whenever inferno occurs.

    On building insurance, he said, the state government is currently ensuring that quality materials are used for building of structures, but will also be interested in ensuring that buildings and buildings under construction are adequately insured in the state.

  • Firms partner on travel insurance

    Hepstar and Cornerstone Travel Insurance with global distribution network provider, Amadeus,  are to provide cover for passengers on travel-related risks.

    Amadeus is a leading provider of advanced technology solutions for the global travel industry, including airlines, hotels, travel agencies, corporations and travel management companies

    In the new deal, Hepstar, the Cape Town-based firm, will integrate travel agents bookings through Amadeus channels with a variety of travel insurance products they can offer their travellers from the comfort of a single booking.

    According to promoters of the project, the insurance integration will protect passengers against risks associated with travel with adequate insurance coverage. “Besides saving time, travel agents can now add insurance policy to flight bookings,”they said.

    Head, Electronic Business and Alternative Markets, Cornerstone Insurance, Kolawole Ladejobi, said the deal has made insurance accessible to travellers.

    He said:“Our aim is to revolutionise penetration and distribution of insurance through cutting edge technology. With our partnerships, we have made travel insurance more accessible for Nigerians and seamless for travel agents.”

    Hepstar Chief Operating Officer, Claudia Snyman, said:  ”We’re making it easier for travel agents in Nigeria to book insurance products smoothly through the GDS. This will be hugely beneficial for travel agents and travellers alike.”

    General Manager, Amadeus Nigeria, Yann Gilbert said: “We continue to add new value to the travel ecosystem by ensuring that our customers have everything they need to offer their travellers the best service. By integrating insurance content into our channels, travel agents can now save time by booking all the elements of a trip within their existing booking flow and with only a few key strokes.

    “Trip and traveller details are automatically pre-populated so no data needs to be entered twice. This saves time and effort for the agent. Insurance bookings are fully integrated into the Passenger Name Record (PNR) and back office systems, allowing for easy reporting and after-sales servicing.’’

    Donald Ullah of Rewards Travel, a customer to Amadeus in Nigeria, said:”By taking out travel insurance, you are essentially covering yourself against travel risks, such as lost or stolen luggage, cancellation cover and, most importantly, unexpected medical costs abroad. Selling Cornerstone products through Amadeus takes no time and is extremely easy. It is allowing our travel consultants to offer a complete and very competitive travel service to our customers.’’

     

  • AXA Mansard reiterates commitment to viable health insurance system

    AXA Mansard reiterates commitment to viable health insurance system

    One of Nigeria’s leading insurance firms, AXA Mansard has reiterated its commitment to the development of community health insurance system in the country.

    AXA Mansard’s Managing Director, Mr. Tope Adeniyi, who spoke with journalists during the commissioning of Nathaniel Olabisi Idowu Community Health Centre at Eni Osa, Lagelu/Akinyele local government area of Oyo State, said the company through its HMO would provide technical supports for the partnership between community health centers and University College Hospital (UCH), Ibadan.

    He said: “There is an active plan by Nathaniel Idowu foundation to further expand the scope of services provided by the NOICH, to include a soon-to-be-launched community based health insurance scheme (CBHS) which will be managed by AXA Mansard insurance company.

    “AXA Mansard being an insurance company will support community health insurance system. We have an HMO that focus on building community to make sure that they have better health care at an affordable cost in order to ensure the sustainability of this partnership between this health centre and University College Hospital (UCH) in Ibadan.

    “We needed to introduce technical support on health insurance whereby the community pays a token and supported by the Nathaniel Idowu health organization so that the centre can keep growing from time to time. We render technical support on how the premium will be determined, collected, administered. We also help in improving the quality of health care from time to time.”

    On why the company is fully involved in the initiative, Adeniyi said one of AXA Mansard’s critical objectives is to develop people and empower them to live a better life.

    “We threw our weight behind the initiative by developing a model that will ensure a sustainable growth for a developing country, especially through good health system. Universal health care will be easier to achieve by this kind of model. We intend not only to stop here but to extend these services to all teaching hospitals throughout the country, making them to partner with community health development centre for a sustainable health care delivery system across Nigeria,” he added.

    The Minister of Health, Prof. Isaac Adewole, said primary health care centres are basically for preventive measures and should be established closer to people in rural areas.

    Adewole, who was represented by the Chief Medical Director of UCH, Prof. Temitope Alonge, said UCH would assist the health centres by ensuring that doctors visit the facilities regularly to assist people in the community.

    The chairman of the occasion, Senator Lanre Tejuosho, lauded the initiative, saying the Federal Government planned to establish 10, 000 primary health care centres across the country but that has not been achieved due to paucity of funds.

    Tejuosho, who is the Chairman of Senate Committee on Health, said: “We are very happy that individuals and organizations are taking it upon themselves to fund and establish health care centres. Lack of primary health centres made it compulsory for teaching hospitals to take up the services of such centres. We are working at the Senate to collaborate with other stakeholders in the health sector to establish more health centres by the end of 2018 so that the centres can take back their roles as primary health care centres in the country.”

     

  • ‘Brokers can generate S1m in Lagos’

    ‘Brokers can generate S1m in Lagos’

    Brokers can make about $1 million yearly in Lagos State, Mr. Gboyega Olanbiwoninu, Head, Business Development, Scib Nigeria & Co. Limited, a firm of Insurance Brokers, has said.

    A report from the National Insurance Commission (NIACOM) said   insurance premium stood at N318 billion (or $1.1 million) last year.

    He spoke on the sideline of a summit on insurance companies by the Lagos Chamber of Commerce & Industry (LCCI) and the Lagos State Safety Commission to keep Lagos safe and grow the insurance sector.

    Olanbiwoninu underscored the role of insurance in developed economies, noting that in most developed economies, every aspect of life is insured. He recalled his experience in Switzerland where a compulsory students’ insurance was undertaken.

    The modest premium of about $1 million, observers say, is as a result of the non-compliance with Insurance Act 2003 by the over 22 population in Lagos and the non-implementation of the relevant aspects of the law by the government.

    He noted that that compliance with the law would grow the sector.

    Olanbiwoninu said the the 2003 Insurance Act covers third party motor insurance liability, occupiers liability, health insurance, protection of life against building collapse and fire outbreak.

    He advised Lagos to take advantage of her huge population and encourage the growth of the sector. He commended the state government for empowering the state Safety Commission to ensure the safety of lives and property by insisting that all aspect of existence in the state is henceforth insured.

    According to him, about 60 car accidents happen daily in Lagos and on several occasions people resort to fisticuffs because they have no insurstate to go ahead with the planned implementation of the compulsory insurance scheme stressing that it will ensure the state is enlisted as one of the safest cities to live in the world as almost every aspect of every residents life will be insured.

    Olanbiwoninu also said the implementation will further help to grow the industries contribution to GDP which is currently at an abysmal level of about 0.8 per cent.

    He said: “The low contribution of insurance GDP may not be unconnected with the apathy shown to Insurance products by the insuring public whilst other reasons adduced to this include lack of awareness and demonstrated value. The compulsory Insurances have the potential of increasing the current gross income of the Insurance Industry by about 52 per cent at full implementation

    “It is instructive to note that the joint task force between NIA and NCRIB set up towards the implementation of the Compulsory Insurance have put in place marketing campaigns to enlighten the Insuring public as well as present value in terms of records of claims payment, he added”.

     

  • STI grows assets by 3%

    STI grows assets by 3%

    Despite the harsh operating environment during the 2016 financial year, Sovereign Trust Insurance (STI) Plc grew its balance sheet by 3.26 per cent from N9.2 billion in 2015 to N9.5 billion in 2016, its Chairman, Oluseun Ajayi, has said.

    He spoke at the company’s 22nd Annual General Meeting (AGM) held in Lagos.

    The chairman, however, said there was a downward shift in the gross premium written compared to the same period ended December 31, 2015.

    He said the company ended the year with a gross premium written of N6.3 billion as against N7.1 billion in 2015.

    He stressed that the year was very tough for many business operators and the industry with the attendant foreign exchange scarcity which had a negative effect on the value of the Naira.

    He said as a result of the increase on  foreign currency and the drop in the consumption of insurance by the insuring public, the company’s profit in the year was  affected.

    From a profit before tax of N454 million in 2015, profit before tax in 2016 dropped to N44.98 million in 2016 while profit after tax was N23.59 million, he added.

    He said the comprehensive income  net of tax rose to N186 million from N19 million in 2015.

    He said their investment income grew from N214 million in 2015 to N281 million in 2016, representing about 32 growth rates.

    He noted that the  economic situation, which affected most  organisations, was beginning to show signs of recovery. He was confident that the company would benefit from the recovery in the year.

    On the company’s outlook,  Ajayi said: “The drive to continue to uphold comprehensive growth strategy still forms the background upon which our company is built. With our updated knowledge and understanding of the domestic business dynamics, our strategic direction will be designed to proactively envisage the likely opportunities that are inherent in the industry and mitigate against possible threats that may adversely affect our operations in the current year and beyond.

    “The expansive economy and growing population offer great opportunities to businesses in the country. The potential of the economy cannot be underestimated even in the face of renewed interest from international investors. All of these, in addition to the low penetration rate of insurance market, are pointers to great opportunities available in our country and industry. We also plan to align with various NAICOM’s growth initiatives in advancing the course of the insurance industry in Nigeria.

    “Resources will be continually deployed in line with our strategic master plan to achieve greater success and take our frontal position in the years ahead. We are currently in the process of initiating another five-year strategic direction that will take the company to the next phase of our growth from 2018 through 2022.

    Technology, no doubt will form the pivotal thrust of this process in ensuring that we remain competitive and relevant in the insurance market space in many years to come.’’  

  • Almond to hold consumers’ forum

    Almond to hold consumers’ forum

    The Insurance Consumers Forum (ICF) will hold on Wednesday, October 25, at the Central Business District (CBD), Alausa, Ikeja. The event, sponsored by Almond Production Limited, is a platform for interaction between insurers and the insuring public to promote excellence in customer service delivery.

    The theme for the forum is: Insurance penetration in Nigeria: Shifting focus from policies to providing value for the customers.

    The forum will be chaired by former Group Managing Director, Royal Exchange Plc, Mr. Chike Mokwunye.

    The guest speakers is Prof. Festus Epetimehin, first professor of Insurance and Risk Management in Nigeria and Dean College of Management Sciences, Joseph Ayo Babalola University (JABU) in Osun State, while the discussant is Mr. Valentine Ojumah, managing director, FBN Insurance Limited.

    A highlight of the event is the open forum.

    Almond Managing Director Faith Ughwode said the forum is bigger and better this year because of the participants who are drawn from trade groups formal and informal as well as officers of the various law enforcement agencies who have dealings with the enforcement of insurance, mechanic associations, drivers’ associations, the maritime sector, among others.

  • NAICOM to sack insurance CEOs, brokers for non-payment of claims

    NAICOM to sack insurance CEOs, brokers for non-payment of claims

    The National Insurance Commission (NAICOM) will remove the chief executive of any insurance and broking firm who fails to pay genuine claims, the Commissioner for Insurance, Mohammed Kari, has said.

    He gave the warning at the  Professional Forum of the Chartered Insurance Institute of Nigeria (CIIN) held in Abeokuta,  the Ogun State capital.

    Kari listed other issues for which CEOs could be sanctioned to include their companies’ inability or refusal to settle inter-company balances.

    These, according to him, have risen to an unacceptable level where the commission is required to withdraw the self-regulation option given operators to apply the big stick.

    He said the commission was alarmed by the incessant complaints of failure of insurance companies to settle genuine and discharged claims to policy holders.

    He said the commission had  received requests from claimants to apply the companies’ statutory deposit to settle discharged claims as stated by law, and that the process had started.

    Kari said: “And as a punitive measure, we have agreed to also publicise any company whose deposit is so applied and to have the chief executive of such company discharged.

    ‘’For all intermediaries who are brokers and insurance agents that hold back clients’ and companies’ money or collude to steal or corruptly operate, such actions being criminal, would be forwarded to the appropriate law enforcement agencies.’’

    He said the commission’s visit and meeting with the Economic and Financial Crimes Commission (EFCC) would enable them to establish a joint taskforce to, among other things, ensure corruption is weeded out of the insurance sector.

    CIIN President Mrs. Funmi Babington-Ashaye, while speaking on the theme of the forum, “Solvency, stability and growth-exploring possibilities,”  chosen to draw attention to some of the critical challenges facing the industry, said they could evolve strategic solutions for the industry.

  • Leadway Assurance reiterates commitment to lawyers

    •Provides N1m cover for NBA members

    Leadway Assurance has reiterated its commitment to provide insurance protection to practicing lawyers, who are members of the Nigerian Bar Association (NBA).

    The provision of insurance cover, Leadway said,  was based on its partnership with the NBA for the week long 2017 NBA General Conference, which held in Lagos.

    Speaking on the partnership, Executive Director, Leadway Assurance, Ms. Adetola Adegbayi, said the company deployed its state-of-the-art, first-of-its-kind Insurance mobile office to engage the thousands of lawyers, who attended the conference, on its tailored-for-lawyers insurance plan known as the Leadway Lawyer Affinity Cover.

    She explained that the plan, which is for all active NBA members, comes at no extra cost to them as it is covered under the annual bar practice fee paid to the NBA. She added that the plan provides insurance cover of up to N1 million for accidental permanent total disability, critical illness, accidental medical and accidental death expenses for the ‘learned’ professionals.

    She said: “We believe that by providing insurance to the members of the Nigerian Bar Association, we are intrinsically providing the biggest support to the economy, governance and government of the country. Insurance helps safeguard the profession and the professionals alike.

    “It would be recalled that the NBA, the largest body of lawyers in Africa with over 100,000 registered members, entered into a strategic partnership with Leadway Assurance Limited in 2014 to provide a feasible group life insurance policy for all lawyers, who pay their Annual Bar Practice Fees when due. The insurance policy is designed to cover all the lawyers in the following areas: Death or permanent total accidental disability; accidental death; critical illness and accidental medical expenses.”

  • STI to increase share capital at AGM

    Increase of share capital will be one of the major discussions that will dominate Sovereign Trust Insurance Plc 22nd Annual General Meeting (AGM), scheduled for  September 21, 2017,  it was learnt.

    The company’s Corporate Affairs Manager, Segun Bankole, said the AGM followed approvals for its 2016 Annual Report and Accounts by the various regulatory authorities.

    The meeting, which will take place at the Grand Banquet Hall, Civic Centre, Victoria Island Lagos, will focus on increasing the authorised share capital of the company from N5.5 billion to N7.5 billion by the creation of 4,000,000,000 (four billion) ordinary shares of 50 kobo each ranking pari-passu in all respects with the existing ordinary shares of the company.

    The meeting will also authorise the Directors to raise additional equity capital for the company up to the maximum limit of the authorised share capital, whether by way of special placement, public offer or rights issue or a combination of any one of them, either locally or internationally.

    Under the ordinary business, the meeting will also consider audited financial statements for the year ended December 31, 2016, as well as the reports of the Directors and the audit committee.

    The agenda also include re-election of Directors, who are still eligible and at the same time authorise them to fix auditors’remuneration while the shareholders will elect their represecommittee. STI is a wholly owned Nigerian company.

  • Linkage offers survival for SMEs

    Underwriting firm, Linkage Assurance Plc, is committed to helping small and medium enterprises survive business challenges and grow into the future, its Managing Director, Dr. Pius Apere, has said.

    He made this known while speaking with newsmen in Lagos. According to him, the company through one of its newest products, ‘SMEComprehensive Insurance Plan’, provides financial protection to small and medium sized businesses against array of insurable risks in order to ensure their business continuity.

    SME comprehensive insurance, he said,  allows business owners to run their companies without having to worry about unexpected events that can slow them down or bring them to a complete halt.

    Apere said the cover provides for water damage from leaking pipes, money lost in transit, theft, fire incidence at warehouse, among other kinds of liabilities, stressing that these are liabilities that cannot always be anticipated. The company, he added, provides business owners the confidence they need to keep moving with the knowledge that their assets are covered from loss and other legal liabilities.

    He said: “The Plan is available with five different optional section and flexible enough to cater for the insurance needs of SMEs across diverse sectors of the market.

    “At Linkage, we understand that Nigerian SME businesses operate in a tough, rough and often fast changing harsh economic environment. SME businesses are still held to the same standards of corporate governance, employee welfare and liability as the larger companies and they often have to manage their risks with fewer resources and less time to spare on distresses other than those relating to day to day business.

    “SMEs, therefore, require an affordable, well packaged insurance policy, which will protect their assets, liabilities and employees from the risks associated with operating a business. Our comprehensive plan covers a wide spectrum of SME customers from a small single office premises for self-employed business owners to a multi-dimensional retail companies with a material damage/business interruption exposure spread across multiple locations.

    “The cover is for hotels, hospitals, water bottlers, publishers/printers, drycleaners, haulage, furniture, logistics and cottage manufacturers, among others.”

    Features of the plan listed include damage to buildings as a result of fire; theft of contents, with the following options to cover; occupier’s liability; personal accident for employees; professional indemnity and motor, including own goods.